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Shenzhen SDMC Technology CoFRA:6RJ +4.85%28 Return-on-Tangible-Asset is 11.18% as of Dec. 2025, which is 3% above its 10-year median of 10.84. GuruFocus rates FRA:6RJ with a GF Score™ of 28/100. The stock has 3 warning signs investors should review. Among 2,499 Hardware companies, Shenzhen SDMC Technology Co ranks better than 86.47% on this metric.
Shenzhen SDMC Technology Co (FRA:6RJ) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Shenzhen SDMC Technology Co Return-on-Tangible-Asset Related Terms
Shenzhen SDMC Technology Co Return-on-Tangible-Asset Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Shenzhen SDMC Technology Co Return-on-Tangible-Asset Chart
FRA:6RJ vs CSCO, MSI, HPE: Return-on-Tangible-Asset Comparison
For the Communication Equipment subindustry, Shenzhen SDMC Technology Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shenzhen SDMC Technology Co Return-on-Tangible-Asset vs Hardware Industry
For the Hardware industry and Technology sector, Shenzhen SDMC Technology Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Shenzhen SDMC Technology Co's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 11.18% mean?
Shenzhen SDMC Technology Co (FRA:6RJ) has a Return-on-Tangible-Asset of 11.18% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Shenzhen SDMC Technology Co and its competitors. This is near median its historical median of 10.84. Over the past decade, Shenzhen SDMC Technology Co's Return-on-Tangible-Asset has ranged from 6.73 to 17.05. According to the industry distribution chart, Shenzhen SDMC Technology Co ranks #338 out of 2499 companies in the Hardware industry, placing it in the top 13.5%.
Is Shenzhen SDMC Technology Co's Return-on-Tangible-Asset too high?
Shenzhen SDMC Technology Co's current Return-on-Tangible-Asset of 11.18% is near median its 10-year median of 10.84. Over the past 10 years, this metric has ranged from a low of 6.73 to a high of 17.05. The Hardware industry median Return-on-Tangible-Asset is 2.47. Shenzhen SDMC Technology Co's value of 11.18% is 352.6% above this industry median. Based on the distribution chart, Shenzhen SDMC Technology Co ranks #338 out of 2499 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Shenzhen SDMC Technology Co has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen SDMC Technology Co's Return-on-Tangible-Asset compare to CSCO and MSI?
According to the Hardware industry distribution chart, Shenzhen SDMC Technology Co ranks #338 out of 2499 companies for Return-on-Tangible-Asset. This places Shenzhen SDMC Technology Co in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.47. Shenzhen SDMC Technology Co's value of 11.18% is 352.6% above this benchmark. Historically, Shenzhen SDMC Technology Co's own Return-on-Tangible-Asset has ranged from 6.73 to 17.05 over the past decade. While the company's 10-year median is 10.84 vs. the industry median of 2.47, Shenzhen SDMC Technology Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Hardware company?
The median Return-on-Tangible-Asset among Hardware companies is 2.47, based on 2,499 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shenzhen SDMC Technology Co's current Return-on-Tangible-Asset of 11.18% is 352.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Shenzhen SDMC Technology Co and its competitors. For the Hardware industry, the median Return-on-Tangible-Asset is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen SDMC Technology Co's current Return-on-Tangible-Asset is 11.18%, which is near median its own 10-year median of 10.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen SDMC Technology Co stock overvalued right now?
Shenzhen SDMC Technology Co (FRA:6RJ) has a current Return-on-Tangible-Asset of 11.18%. The current Return-on-Tangible-Asset is 11.18%, which is near median its 10-year median of 10.84 and 352.6% above the Hardware industry median of 2.47. Shenzhen SDMC Technology Co's overall GF Score™ is 28/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Shenzhen SDMC Technology Co (FRA:6RJ), the current Return-on-Tangible-Asset is 11.18% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Shenzhen SDMC Technology Co Ltd is principally engaged in (i) sales of digital video products and network communication products, and (ii) provision of system platforms and services. The majority of revenue was mainly generated from sales of hardware products, namely digital video devices and network communication devices. Its other hardware products include media streaming terminals, speakers, projectors, cameras, optical network terminals, Wi-Fi routers, and cable modems. The company also develops system platforms including Cedar, XHome, and XMediaTV. Geographically, the maximum revenue is generated from Asia.
28GF Score
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